However, the research reveals that opting for a £1,000 excess instead of a lower £250 amount will save drivers just £12 over the course of a year.
Therefore if a driver had to make a claim, they would be losing a large proportion of money than if they paid a little bit extra for the annual premiums itself.
Each year it is estimated that one in 10 UK drivers make a claim on their car insurance policy.
Interestingly, drivers who choose the highest voluntary excess option, usually £1,000, might think they will benefit from a significant saving on the annual policy cost.
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Drivers opting for a higher excess could end up paying more in the long run
Rod Jones, insurance expert at uSwitch.com, says: “Worryingly a large number of drivers are taking on huge financial liabilities in exchange for tiny annual savings on their motor insurance.
“While many think that opting for a policy with a higher level of excess will save them money, drivers should ask themselves if an additional risk of £750 is really worth an average saving of just £1 a month and would they be put off making a claim knowing they’d have to pay a significant sum for doing so?
“With more than one in ten of those with a motor insurance policy likely to make a claim each year, we urge those looking to renew or switch their insurance to think seriously about the level of risk they want to take financially before they commit to a new annual policy.”
